Skip to content

Oil Falls as Expectations Rise for OPEC to Ease Production Cuts

Gordon Chang: On the Hong Kong Security Law, the India China Standoff, and Banning TikTok

Just over a week in, what do we know about the National Security Law imposed on Hong Kong by Beijing? Why hasn’t President Trump yet signed the Hong Kong Autonomy Act? How is the Chinese regime becoming increasingly belligerent internationally, from its border with India to the South China Sea? And, how does the Chinese regime mine and use the data of Americans? Should the U.S. ban Chinese-owned apps like TikTok? In this episode, we sit down with political commentator and China analyst Gordon Chang, author of “The Coming Collapse of China.” This is American Thought Leaders ??, and I’m Jan Jekielek. American Thought Leaders is an Epoch Times show available on Facebook and YouTube and The Epoch Times website.  Follow Jan on Twitter: @JanJekielek Focus News: Gordon Chang: On the Hong…

Oil Falls as Expectations Rise for OPEC to Ease Production Cuts

Oil prices dipped on Monday as traders considered factors like a surge in COVID-19 infections globally and a much-anticipated technical meeting of representatives of the Organization of the Petroleum Exporting Countries (OPEC), at which a push is expected to lift production curbs, according to sources cited by The Wall Street Journal.

Brent crude fell 22 cents, or 0.5 percent, to $43.02 a barrel by 13:40 GMT, though prices have been hovering around $42 for a couple of weeks. U.S. crude was down 21 cents, or 0.5 percent, at $40.34.

The World Health Organization (WHO) reported a record daily increase in global COVID-19 cases on Sunday, with the total up by more than 230,000. Infections surged in the United States over the weekend, with Florida reporting a rise of more than 15,000 new cases in 24 hours, a record for any state. Still, daily deaths due to the deadly disease in the United States are down from their April 21 peak of 2,748 to 380 on July 12, according to official figures compiled by Worldometers.

Traders have been eyeing OPEC’s forthcoming Joint Ministerial Monitoring Committee (JMMC) meeting on Tuesday and Wednesday, at which OPEC and its allies including Russia, a group known as OPEC+, will recommend levels for future supply cuts. Earlier, in response to plummeting demand due to the pandemic, OPEC+ cut output by a record 9.7 million barrels per day for May, June, and July.

Oil Falls as Expectations Rise for OPEC to Ease Production Cuts

OPEC delegates cited by The Wall Street Journal said that a group of oil producers led by Saudi Arabia would push for an increase in crude production starting in August. The Saudi-driven proposal was reported to amount to an increase of OPEC+ daily oil production by 2 million barrels, up to 7.7 million barrels per day.

OPEC Secretary General Mohammad Barkindo said on Monday that the easing of pandemic-driven lockdowns has led to a gradual rise in oil demand, bringing the oil market closer to balance.

The Paris-based International Energy Agency (IEA) bumped up its 2020 oil demand forecast on Friday but warned that the spread of COVID-19 posed a risk to the outlook.

The Paris-based IEA raised its forecast to 92.1 million barrels per day, up 400,000 barrels per day from its outlook last month, citing a smaller-than-expected second-quarter decline.

“While the oil market has undoubtedly made progress … the large, and in some countries, accelerating number of COVID-19 cases is a disturbing reminder that the pandemic is not under control and the risk to our market outlook is almost certainly to the downside,” the IEA said in its monthly report.

The easing of lockdown measures in many countries caused a strong rebound to fuel deliveries in May, June, and likely also July, the IEA said.

Demand for crude in 2021 will likely be 2.6 million barrels below 2019 levels, with kerosene and jet fuel due to a drop in air travel accounting for three-quarters of the shortfall, the IEA noted.

Reuters contributed to this report.

Follow Tom on Twitter: @OZImekTOM

Focus News: Oil Falls as Expectations Rise for OPEC to Ease Production Cuts

US Warns Americans in China of ‘Heightened Risk’ of Arbitrary Detention, Exit Bans

The U.S. state department has warned Americans to exercise “increased caution” in China due to an elevated risk of arbitrary law enforcement, including detention and bans on exiting the country. The security alert, issued on July 11 by the U.S. Embassy in China, said U.S. citizens “may be detained without access to U.S. consular services or information about their alleged crime.” It added that Americans may be subject to “prolonged interrogations and extended detention for reasons related to ‘state security.’” “Security personnel may detain and/or deport U.S. citizens for sending private electronic messages critical of the PRC [People’s Republic of China] government,” the alert said. It did not provide specific examples. The department did not say what prompted the notice. The move comes amid deteriorating relations between Washington and Beijing…